The gift card industry has been growing rapidly in recent years. According to a report by Persistence Market Research, the global gift card market is expected to reach $1,210 billion by 2027. This growth is due in part to changing consumer behavior and the rise of e-commerce. In this article, we’ll explore some of the latest gift card industry trends.
1. Personalization
Personalization has become a major trend in the gift card industry. Consumers want to give gifts that are unique and personalized to the recipient. Gift card companies are responding to this trend by offering more customization options. For example, some companies allow customers to upload their own photos or designs to create a personalized gift card. Others offer the ability to add a personalized message or choose from different card designs.
2. Digital and mobile gift cards
Digital and mobile gift cards have become increasingly popular in recent years. Consumers like the convenience of being able to send a gift card instantly via email or text message. This trend has been accelerated by the COVID-19 pandemic, which has made online shopping and contactless payments more important than ever. According to a report, digital gift card sales grew by 31% in 2020.
3. Multi-store and multi-brand gift cards
Another trend in the gift card industry is the rise of multi-store and multi-brand gift cards. These cards allow consumers to use their gift card at multiple stores or brands, giving them more flexibility and choice. This trend is driven by the growing popularity of online marketplaces like Amazon and Walmart, which offer a wide range of products from different brands.
4. Experiential gift cards
Experiential gift cards have become more popular in recent years, as consumers look for ways to give experiences rather than physical gifts. Experiential gift cards can include things like spa treatments, restaurant meals, or travel experiences. According to a report by Blackhawk Network, experiential gift card sales grew by 40% in 2019.
5. Sustainability
Sustainability has become an important consideration for many consumers, and the gift card industry is no exception. Gift card companies are responding to this trend by offering more environmentally friendly options. For example, some companies offer gift cards made from recycled materials, or allow customers to donate a portion of their gift card value to a charity or environmental cause.
6. Virtual events and gifting
The COVID-19 pandemic has led to an increase in virtual events and gifting. Companies are now offering virtual gift cards that can be used for online events or experiences, such as virtual cooking classes or wine tastings. This trend is likely to continue even after the pandemic, as more people become comfortable with virtual experiences.
7. Loyalty and rewards programs
Gift card companies are increasingly offering loyalty and rewards programs to incentivize repeat purchases. These programs can include things like discounts, free shipping, or exclusive offers for members. Loyalty and rewards programs can help gift card companies build customer loyalty and increase repeat business.
8. Personal finance and budgeting tools
Finally, some gift card companies are offering personal finance and budgeting tools to help consumers manage their gift card balances and track their spending. These tools can include things like mobile apps that allow consumers to check their gift card balances and transaction history, or budgeting tools that help consumers stay on top of their spending.
In conclusion, the gift card industry is constantly evolving to meet the changing needs and preferences of consumers. From personalization and digital gift cards to sustainability and experiential gifting, there are many trends shaping the industry. As the industry continues to grow, gift card companies will need to stay on top of these trends to remain competitive and meet the needs of their customers.